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EVCA says European corporate venturing increased slightly in 2003

European corporate venturing investment activity recorded a modest increase in 2003 and a brighter recovery in fundraising, according to a survey published by the European Venture Capital Association.

The value of investment rose 40 per cent to E470m in 2003 from E337m the previous year. The number of deals, however, dropped slightly to 315 from 337 in 2002. The recovery in values was driven by the consumer, communications and computer sectors, EVCA said.

Georges Noel, director of research and public affairs at EVCA, said: 'The results of this survey are very encouraging for the corporate venturing sector…With confidence improving in the wider venture capital and technology markets and as the corporate venturing sector provides an important contribution to early stage financing, we have a solid foundation for potential growth in the sector in coming years.'

The survey also reported an increase in fundraising by corporate venturers from external sources of capital in 2003 to E216m from just E58m in 2002.

Although the headline figures of the report are encouraging, the scale of the corporate venturing community remains a fraction of the size it had achieved just a few years earlier. The universe of corporate venturers is much smaller than it was at its peak and few firms appear to have the appetite to make an imminent return.

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